Will Nylon 66 Prices continue to increase through the end of 2020?

Chemco Services, Inc
James Gubera – Nylon 66 Sales Specialist

Nylon 66 Off-Grade Base Resin
PA66 Wide Specification Compounds
PA66 Post Industrial (PI) Baled Fibers, PI Regrinds / PI Shred
Contact Jim Gubera at: jgubera@chemcoservices.com

Nylon 66 prices have increased as the world’s economy recovers from the Covid-19 pandemic.

     The prices of both prime and off grade Nylon 66 base resin and compounds have increased since Auguust due strong demand for finished polymer as the world economy recovers from the slowdown caused by the Covid-19 pandemic.  Demand for PA66 slowed down considerably beginning in mid-March, and demand in the market for nylon remained slow to flat until August of this year.  Starting in August the overall demand started picking back up for all PA66 off grade pellets, post industrial (PI) fibers and PI regrinds/shred.  Demand for PA66 off grade base resin has continued to increase in volume on a monthly basis since August, and continues to increase even more as we move into the 4th QTR of 2020.  The growing demand for resin has caused the price of both prime and off grade PA66 to increase in the world market.

We have seen the prices of Nylon 66 off grade pellets, baled fibers and regrind/shred increasing on a monthly basis since mid-August due to strong demand for all of the nylon products that CSI sells.  The market is currently seeing that demand is greater than supply for all second quality Nylon 66 materials. The shortage of supply is mainly due to the fact that all of the USA / Asian PA66 polymer plants have been operating at reduced production capacity due to decreased demand for finished products caused by the slowdown in the world economy brought on by the Covid-19 pandemic.  We are now seeing increased demand for wide specification nylon feed stock in the added value compounding market, as well as increased manufacturing and production in the other segments of the nylon market like the automotive industry, fiber extrusion, and for injection molding applications.  Overall manufacturing rates are not back to pre-Covid-19 levels yet, but we are heading in the right direction, and seeing demand for material and sales volume increase on a monthly basis.

The price for PA66 off grade / wide specification resin has increased by about $.10-$.15/lb. since August, and will probably continue to increase even more before the end of 2020.  We have been paying a price increase on a monthly basis since August for all of the off grade resin and fibers that we purchase, and feel that this will be a continuing trend through December.  The PA66 producers have been able to manipulate the amount of prime and off grade resin that is being sold in the market by slowly increasing the production rates at the polymer plants in order to keep the supply of material tight in the market.  Once all of the PA66 polymer plants are back up and running at full capacity, then we hope to see a better balance between supply and demand of second quality PA66 in the world market. For this reason, the price of prime PA66 is increasing in both the USA and Asian markets, which in turn is also driving up the price of nylon off grade pellets, second quality fibers, PI regrinds and PI shred.

Below is a list of some of the recent PA66 price increase announcements.

  • Ascend      $0.10/lb. USA – $0.136/lb. Asia – Effective October 15
  • BASF         $0.6/lb. – Effective August 1
  • BASF         $0.136/lb. – Effective October 1
  • Celanese  $0.136/lb. – Effective September 15
  • Domo        $0.136/lb. – Effective September 11
  • Radici        $0.136/lb. – Effective October 1

In short, the world’s Nylon 66 market has seen the price of both prime and off grade resin increase around $.10-$.15/lb. since August, and material prices are expected to increase even more before the end of 2020 based on strong demand and tight supply for all 66 base resin and compounded products.

CSI Grade # 1007HS Blend

  • PA66 Off Grade Pellets – No Heat Stabilizer
  • There will be some low melt pellets (PA66/6) present in the blend
  • Can have off color pellets and/or black specs present in the blend
  • Approximately 4-7% PA6/66 Copolymer Resin
  • Target:   245-247 ⁰C Melt Range
  • RV Formic:  45-55 RV Sulphuric:  2.61-2.81
  • Packaged in Supersacks / Big Bags or boxes with PE Poly liners
CSI Grade # 1007HS
PA66 NAT HS Blended Pelelts

Contact Jim Gubera for a price quotation
Tel # +1 281-556-6481
Email: jgubera@chemcoservices.com
Chemco Services Inc. – Nylon 66 Off Grade Specialists

#nylon66, #PA66Sales, #recycleplastic, #plasticrecycling

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